National Association of Insurance Commissioners (NAIC)

What is an National Association of Insurance Commissioners (NAIC)?

 

A trade association of state insurance commissioners that issues model insurance acts that states can adopt. The NAIC accredits states that have enacted specific insurance legislation and demonstrate adequate regulatory oversight over the insurers they license.

 

Understanding National Association of Insurance Commissioners (NAIC)

 

An admitted insurance carrier is backed by a specific state. An admitted carrier can be admitted in one state but not another. To be an admitted carrier, an insurance company must comply with all of the regulations set by the state that has admitted them.

Working with admitted carriers provides added benefits to consumers. When purchasing policies from admitted carriers, consumers often experience the omission of certain fees and taxes. Consumers also have the right to appeal to the state if policies have been handled improperly. This sets admitted carriers apart from non-admitted insurance carriers.